• Raphan Law: Blog

Nursing Home’s Claim Has Priority over State’s Medicaid Claim

A New York appeals court rules that a nursing home that had a claim against the guardianship account of a resident is entitled to reimbursement from the account before the state, which had a claim for Medicaid reimbursement against the resident’s estate. In re: Shannon (N.Y. Sup. Ct., App. Div., 1st Dept., No. 12218, 12219, 92560/08, June 17, 2014).


After Ms. Shannon died, the state filed a claim against her estate for reimbursement of Medicaid expenses. The nursing home argued its claim accrued before the state’s claim because the state did not have a lien against Ms. Shannon’s home. The state argued that it was a preferred creditor, and the trial court agreed. The nursing home appealed.

The New York Supreme Court, Appellate Division, reverses, holding that the nursing home is entitled to reimbursement from the guardianship account before any funds pass to the estate. According to the court, the state had a priority claim only against the estate, while the nursing home’s “claim accrued during the decedent’s lifetime, against the guardianship account, with no competing creditors.” One justice dissents, arguing the state should have had priority.

For the full text of this decision, go to:https://www.nycourts.gov/reporter/3dseries/2014/2014_04452.htm

For a free download of Medicaid’s Asset Transfer Rules click here.

Regards, Brian

http://www.RaphanLaw.com

#guardianships #medicaid #nursinghomes

MEMBER:

•National Academy of Elder Law Attorneys

•American Bar Association

•New York State Bar Association

•United States District Court New York Southern District • USDC NY Eastern District

•State of New York Unified Court System

•National Alliance of Trust & Estate Professionals

•Temple University • Cardozo Law School NY

•AARP Listed Attorney

The information on this site is not, nor is it intended to be legal advice and does not automatically create an attorney/client relationship.  On negligence and medical malpractice cases we may participate or partner with other counsel with disclosure to potential client before we or such partnering counsel accept the case.           © 2020 Brian A. Raphan, P.C.

RAPHAN LAW

7 Penn Plaza, 8th floor

(370 7th Avenue)

(7th Ave/31st St.)

New York, NY 10001

 

Tel: 212-268-8200

Fax: 212-244-3075
info@RaphanLaw.com

Twitter.com/NYCelderlawfirm

 

Elder Law News Blog